Home and strata insurance in the Northern Rivers of NSW

Why cover costs more in the Northern Rivers

The main hazard here is flood, not cyclone. The Richmond, Wilsons and Tweed rivers drain steep, high-rainfall catchments onto broad floodplains. Lismore, Coraki, Woodburn, Murwillumbah and parts of Ballina and Mullumbimby have homes on that low ground.

The floods of February and March 2022 across South East Queensland and northern NSW are the costliest insured event in Australian history. The Insurance Council of Australia put the insured loss at $6.37 billion from about 246,000 claims, as at 6 March 2025.

Insurers price flood address by address. Two homes in the same town can get very different quotes, depending on ground level, floor height and flood history.

What premiums look like

The ACCC's reports on northern Australia do not publish a separate figure for the Northern Rivers. They place it in the rest of Australia. The second interim report of the ACCC's Northern Australia Insurance Inquiry (2019) put the average home and contents premium outside northern Australia at $1,400 in 2018-19.

The ACCC's fifth and final insurance monitoring report (June 2026) found that average had risen to $2,310 in 2024-25, up 10 per cent in a year. It said other extreme weather and claims cost inflation were pushing premiums up across the country. In a survey for that report, about half of households rated their home insurance as unaffordable or barely affordable.

These are averages. A home with a high flood risk can be quoted far more, and some insurers will not quote at all.

The cyclone reinsurance pool: what it means here

The cyclone reinsurance pool is an Australian Government scheme that began on 1 July 2022. The Australian Reinsurance Pool Corporation (ARPC) runs it, backed by a $10 billion government guarantee that is reinstated each year. It gives insurers lower cost reinsurance for cyclone risk on home, contents, strata and small business property policies with a sum insured of up to $5 million.

What it covers

  • Wind, rain, rainwater runoff, storm surge and riverine flood damage caused by a cyclone.
  • Damage from the start of a cyclone until 48 hours after it ends, as declared by ARPC from Bureau of Meteorology observations.
  • Eligible policies anywhere in Australia. Cyclone Alfred in 2025 was a declared event. ARPC reported more than 109,000 pool claims from it as at 31 October 2025.

What it does not cover

  • Flood that is not caused by a cyclone. The 2022 floods were not a cyclone event. A flood like that falls outside the pool, so the pool does not lower the flood part of a Northern Rivers premium.
  • Storms, east coast lows and bushfire.
  • Anything your own policy leaves out. If you have opted out of flood cover, the pool does not put it back.

The ACCC's 2026 report found the pool's benefits go mainly to the two per cent of policies at the highest cyclone risk. In areas with no cyclone risk, home premiums rose 6 per cent in the year after insurers joined.

Practical steps

  • Know how your policy defines flood. Home, contents and strata policies must use the standard definition of flood set by law. Some insurers let you remove flood cover to cut the premium. Check the policy schedule to see if you have it.
  • Check the Resilient Homes Program. The NSW Reconstruction Authority runs this program of buybacks, house raising and retrofits for flood-affected Northern Rivers homes. It is closed to new applications. The NSW Government reported 993 buyback offers and 853 settlements as at 31 August 2026. If you took part, tell your insurer what work was done.
  • Tell insurers about floor height. A surveyed floor level, a raised house or flood-resistant materials can change a quote. Ask what evidence the insurer accepts.
  • Check your sum insured. Use a building cost calculator or a valuation. Allow for demolition, debris removal and professional fees.
  • Compare excess options. A higher excess lowers the premium. Ask whether a separate flood excess applies. Choose an amount you could pay after a loss.
  • Consider a local broker. Strata buildings and homes on the floodplain can be hard to place. A licensed broker can approach insurers and underwriting agencies that do not sell direct. Ask how the broker is paid.

If cover is declined or unaffordable

  • Ask for reasons. You can ask in writing why an insurer refused, cancelled or did not renew cover. The Insurance Contracts Act 1984 requires a written answer. Ask what flood data the insurer used, and give it any survey or council flood certificate you hold.
  • Use the complaints path. Complain to the insurer first. If that does not settle it, the Australian Financial Complaints Authority (AFCA) considers home, contents and strata title insurance complaints. It is free for consumers.
  • Ask about hardship help. Part 10 of the General Insurance Code of Practice applies when you owe an insurer money, such as an excess. Support can include more time, instalments or a reduced amount, and the insurer must decide within 21 calendar days. The Code does not require help with premiums. Ask about instalment payments and any fee for them.

Licensed insurance businesses registered in the region

From the ASIC register. Listing is not a recommendation, and brokers elsewhere can also arrange cover here.

Sources

Last checked: 2026-10-06

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